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Quanex Building Products (NX) Gains As Market Dips: What You Should Know

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Quanex Building Products (NX) closed at $24.17 in the latest trading session, marking a +1.51% move from the prior day. This move outpaced the S&P 500's daily loss of 1.15%. At the same time, the Dow lost 0.71%, and the tech-heavy Nasdaq lost 0.13%.

Heading into today, shares of the housing materials maker had gained 2.23% over the past month, lagging the Construction sector's gain of 6.24% and outpacing the S&P 500's gain of 1.44% in that time.

Wall Street will be looking for positivity from Quanex Building Products as it approaches its next earnings report date. On that day, Quanex Building Products is projected to report earnings of $0.62 per share, which would represent year-over-year growth of 47.62%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $301.1 million, up 7.58% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.35 per share and revenue of $1.19 billion, which would represent changes of +34.29% and +11.02%, respectively, from the prior year.

Any recent changes to analyst estimates for Quanex Building Products should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Quanex Building Products is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that Quanex Building Products has a Forward P/E ratio of 10.13 right now. This represents a discount compared to its industry's average Forward P/E of 13.23.

The Building Products - Miscellaneous industry is part of the Construction sector. This industry currently has a Zacks Industry Rank of 144, which puts it in the bottom 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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